Which of the Following Statements Is NOT True

question 39

Multiple Choice

Which of the following statements is NOT true?

• A)Operating leverage refers to the extent to which a company's net income reacts to a given change in sales.
• B)Companies that have higher fixed costs relative to variable costs have higher operating leverage.
• C)When a company's sales revenue is increasing, high operating leverage is a good thing because it means that profits will increase rapidly.
• D)When a company's sales revenue is decreasing, high operating leverage is a good thing because it means that profits will decrease at a slower pace than revenues decrease.

---

Definitions:

Adler

Refers to Alfred Adler, an Austrian psychiatrist known for his development of individual psychology, emphasizing the importance of feelings of inferiority and societal contributions.

Psychological Disorder

A pattern of behavioral, cognitive, or physical symptoms that cause significant distress, impair daily functioning, or both.

Sociocultural Approach

A perspective in psychology that examines the ways in which social and cultural environments influence behavior.

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theories on neurosis, personality development, and the concept of basic anxiety.